The Tariff is TAX
Tax levied on goods that moves
internationally.
Most common instrument used for
Controlling Exports and Imports. About TARIFFs

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A tax which is levied on goods. The tariff which is levied on exports called “EXPORT TARIFF”.
Tariff imposed on IMPORTS of goods known as IMPORT TARIFF. Define TARIFFs

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The Tariff which is collected on PER UNIT basis called “ SPECIFIC DUTY or TAX”.
EXAMPLE: The specific duty on Import of cars is Rupees : 50,000 per car. SPECIFIC DUTY?

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An important effect of TARIFF is that , It raises the price of the Goods.
For Instance: The import tariff raises the price of Imported good, and thereby makes them less competitive in comparison to domestic goods.

TARIFF are often imposed on the basis of the direction of products movement, i.e. On imports or exports, with the less common one.
When export tariff are levied, they usually apply to an exporting country’s scare resources or raw materials. How direction>>>>>>>>>>>>>>>> Import and Export

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Protective and Revenue Tariff
The purpose of Protective Tariff is to protect Home industry, Agriculture, Labor against Foreign competitors by trying to keep them out of the country. Purpose?

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The purpose of revenue tariff in contrast to Protective tariff means is to generate tax revenue for the government.
Compared to Protective Tariff, Revenue Tariff is relatively low. REVENUE TARIFF

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Surcharge Vs Countervailing Duty, LENGTH

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Protective tariff are further classified into two tariffs :
Surcharge and Countervailing
Surcharge is known as Temporary Action. Tariff Surcharge?

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This duty is a permanent Surcharge .
Example: it is imposed on certain import goods when products are subsidized by foreign governments. COUNTERVAILING TARIFF

For instance: On car { Given in previous slides}.
Ad Valorem Duties…
According to the Value”
[provides an easy comparison of rates across countries and across products]
Specific rates…

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Combination of both Specific and countervailing Tariff.
For Instance: The tariff may be 10 cents per pounds plus 5 percent ad-valorem.
COMBINED RATES…

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Source of revenue.
Tariff serves as a source of revenue to the government just as other taxes and duties do.
Protection of Domestic Industries.
Price of Imported goods in the hands of the consumers is highly by the amount of the tariff.
BENEFITS OF TARIFF

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Redistribution of Income:
Supports domestic producers.
MAJOR DRAWBACKS OF TARIFF ARE;;
Consumer in domestic market have to pay High prices

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NON –TARIFF BARRIERS

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Non-Tariff Barriers (NTBs) refer to restrictions that result from prohibitions, conditions, or specific market requirements that make importation or exportation of products .
NON TARIFF

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Import bans
General or product-specific quotas
Complex/discriminatory Rules of Origin
Quality conditions imposed by the importing country on the exporting countries .
Complex regulatory environment
Determination of eligibility of an exporting country by the importing country
Determination of eligibility of an exporting establishment (firm, company) by the importing country.
Examples of NON TARIFF are as:

A subsidy is a direct payment made by the government to a company in order to make it more competitive nationally or internationally.
Subsidy can be in form of Low interest rate, R& D Development, Cash Grants, Technical assistance and many more.
. SUBSIDIES

A QUOTAS is a Quantitative form of restrictions imposed on imports and exports. It specifies the amount of quantity that could be imported or exported. Normally Restriction is enforced by way of issuing licenses.
For Instance: In the USA, there is an import quota on cheese and only those companies could import which posses a license. IMPORT QUOTAS

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A variation if import quota is the voluntary export restraint (VER). In VER, the exporting nation, after consultation with the importing nation, voluntarily fixes the quota regarding the maximum amount of quantity which it will be exporting to the concerned nation.
The exporting nation agree to VERs in order to avoid the more strict measures like : import quotas, tariffs etc. which could be applied by the importing nations. Voluntary Export Restraints

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A part from the formal ways of interfering in trade, nations resort to international administrative policies, which are rules and procedures to be followed, with the objective of discouraging imports and encouraging exports.
FOR INSTANCE: nether land export TULIP BULBS to all nations except Japan . ADMINSTRATIVE POLICY

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In economics, "dumping" is any kind of Predatory Pricing especially in the context of International Trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market competition. ANTI DUMPING POLICY

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Local Content requirement says that some specific fraction of the product to be produced locally. Sometimes this fraction is specified in terms of value of products and sometimes, in physical terms.
It is imposed by both the nations, developed and developing nations. LOCAL CONTENT REQUIREMENTS

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WHY DEVELPOED NATIONS?
In order to protect the employment and local industry.
WHY DEVELOPING NATION USED ?
For develop industry by assembling from exporter to manufacturer.

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Customs Valuation is the process where customs authorities assign a monetary value to a good or service for the purposes of import or export.
Generally, authorities engage in this process as a means of protecting tariff concessions, collecting revenue for the governing authority, implementing trade policy, and protecting public health and safety CUSTOM VARIATIONS

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For Instance
US imposed 25% customs duty on SPORTS VEHICALS like Suzuki Samurai and Land Rover, by treating them as heavy trucks, instead 2.5 % were fixed for cars.

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Standards are set for health, welfare, safety, quality, size and measurements in order to create barriers for foreign products.
FOR INSTANCE: the labeling requirement could ask a company to specify the place of origin. STANDARDS

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It is known for counter Trade
The exporting country can ask importing country to buy merchandise or services in lieu of cash payment.
Reciprocal Requirements. GOODS GOODS

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“PEPSICO” Provided syrup to Russian Bottling Plants in return for VODKA, which it sold to west.
Example on reciprocal requirement"